Drone maker DJI has suffered a significant legal defeat in the United States. A federal court has rejected the company’s effort to remove itself from a government list that labels it as a Chinese military-linked company. This decision confirms that the U.S. government views DJI as contributing to China’s defense industry.
DJI, officially SZ DJI Technology Co., Ltd., is a Chinese company based in Shenzhen. Founded in 2006, it makes drones for photography, videography, and other commercial uses. The company also produces camera systems and flight control technology. The company holds a major share of the global consumer drone market, and its products are used in industries like film, agriculture, and public safety.
The court highlighted that, although DJI primarily makes drones for consumers and businesses, its technology can be used for military purposes. The ruling cited the use of modified models in the conflict between Russia and Ukraine. According to the court, this demonstrates that the drones have “substantial theoretical and actual military application.”
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DJI had argued in its lawsuit that it is not owned or controlled by the Chinese military. The company emphasized that it produces consumer and commercial drones, not military equipment. It also claimed that being on the U.S. government list has caused ongoing financial and reputational harm, including lost sales and business opportunities. Despite these arguments, the court sided with the government on the central issue of military use.
Government Lists and Restrictions
The U.S. Department of Defense added DJI to its list of companies linked to China’s military in 2022. Prior to this, other agencies, including the Department of Commerce and the Treasury Department, had already placed the company on similar restricted lists.
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These listings have real-world consequences. Being on the DoD list affects the company’s ability to work with U.S. government agencies and can harm its reputation among both corporate and individual customers. In court, it stated that the designation has caused financial losses and damaged its brand worldwide.
While the court upheld the main reason for the listing, it also rejected some of the additional reasons the government had cited. The primary rationale—that DJI contributes to China’s defense capabilities—remains in place, meaning the company continues to be officially classified as a Chinese military-linked company.
DJI Responds and Faces Ongoing Hurdles
Following the court ruling, DJI said it is reviewing its legal options. The company noted that the court’s decision was based on a single rationale, which DJI believes could apply broadly to many other companies that have not been listed.
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The company is also facing other legal challenges in the United States. Government agencies are reviewing whether its drones pose a risk to national security. If the review finds a significant threat, sales could be restricted in the U.S. starting in December.
Despite these hurdles, DJI continues to sell drones internationally and remains a major player in consumer and commercial drone technology. The company’s products are widely used for photography, videography, surveying, and other applications, but their potential for military use remains a point of concern for U.S. authorities.
The court ruling underscores the U.S. government’s focus on monitoring how drone technology can be applied in military situations. DJI’s continued presence on the DoD list highlights the tension between commercial technology innovation and national security considerations. The classification has significant implications for DJI’s operations in the United States, affecting both its business relationships and public perception.